Enter the price before VAT (net/ex-VAT amount) and choose the VAT rate. Get the gross (VAT-inclusive) price and exact VAT amount.
Enter the VAT-inclusive total and get the net price before VAT and the exact VAT amount. Also called reverse VAT or extracting VAT.
Add multiple line items, each with their own VAT rate. Get net subtotal, total VAT, and gross invoice total — ready for your VAT return.
- Supplier name and address
- Supplier VAT registration number
- Unique sequential invoice number
- Invoice date (tax point date)
- Description of goods or services supplied
- Net amount (excluding VAT) per line
- VAT rate applied per line
- VAT amount per line and total VAT
- Gross total (including VAT)
Available to UK businesses with VAT-exclusive turnover under £150,000. You charge customers 20% VAT but pay HMRC a lower fixed percentage of your gross turnover — and keep the difference.
| Business Sector | Flat Rate % |
|---|---|
| IT & computer services | 14.5% |
| Limited cost trader (goods <2% turnover) | 16.5% |
| Accountancy or bookkeeping | 12% |
| Management consultancy | 11% |
| Legal services | 14.5% |
| Advertising | 10% |
| Architect, civil, structural engineer | 14.5% |
| Catering services (food & drink) | 9.5% / 12.5% |
| Estate agency / property management | 9% / 12% |
| Financial services | 13.5% |
| Hairdressing / beauty treatment | 13% |
| Pubs / nightclubs | 10.5% |
| Retail (food) | 4% |
| Retail (general) | 7.5% |
| Transport / haulage | 10% |
Source: HMRC VAT Notice 733. Always confirm your sector rate at gov.uk before filing.
Click any country to load its standard VAT rate into the quick calculator below. Rates are standard rates — reduced rates may apply to food, medicine, and essential goods.
How to Calculate VAT — Formulas, Rates & Common Mistakes
VAT (Value Added Tax) is a consumption tax charged on most UK goods and services. Understanding how to correctly add and remove VAT is essential for invoicing, expense claims, and VAT returns.
How to Add VAT to a Net Price
Formula: Gross = Net × (1 + Rate ÷ 100)
At 20%: Gross = Net × 1.20. Example: £800 net × 1.20 = £960 gross. VAT = £160.
At 5%: Gross = Net × 1.05. Example: £800 × 1.05 = £840 gross. VAT = £40.
How to Remove VAT from a Gross Price (Reverse VAT)
Formula: Net = Gross ÷ (1 + Rate ÷ 100)
At 20%: Net = Gross ÷ 1.20. Example: £960 ÷ 1.20 = £800 net. VAT = £160.
⚠️ Never subtract 20% from the gross. £960 − 20% = £768 (wrong). The VAT is one-sixth of the gross at 20%, not one-fifth.
UK VAT Rates 2025/26
20% Standard — most goods and services, contractor services, digital products, clothing (adult), furniture, electronics.
5% Reduced — domestic energy (gas & electricity), children's car seats, sanitary products, some home improvement work.
0% Zero-rated — most food, children's clothing, books, newspapers, prescriptions, most public transport.
Exempt — insurance, health services, education, residential rents, financial services. No VAT charged; input VAT on related costs cannot be reclaimed.
Zero-Rated vs Exempt — Important Difference
Zero-rated supplies ARE within the VAT system — they count toward the £90,000 registration threshold and businesses can reclaim input VAT on related costs. Exempt supplies are outside the VAT system entirely — they do not count toward the threshold and input VAT cannot be reclaimed. This distinction matters significantly for businesses with mixed supplies.
UK VAT Registration Threshold 2025/26
You must register for VAT when taxable turnover in any rolling 12-month period exceeds £90,000. If you expect to breach the threshold within the next 30 days alone, you must register immediately. Voluntary registration is allowed below the threshold — beneficial if your clients are VAT-registered and you have significant VATable costs to reclaim.